Proposed Red Wings arena cost at $733M
Officials say the cost of building the Red Wings’ new arena has jumped by $105 million to nearly $733 million. The city said the revised estimate to build the Little Caesars Arena reflects new specific costs.
Officials say the cost of building the Detroit Red Wings’ new arena has jumped by $105 million to nearly $733 million.
The city’s Downtown Development Authority said the revised estimate to build the Little Caesars Arena for the NHL team reflects the specific cost of materials, permits, design refinements and subcontractor agreements.
City documents indicate other construction costs could rise, The Detroit News reported.
Officials said the revision doesn’t indicate massive cost overruns nor that taxpayers will face additional expenses.
“The increases represent enhancements or changes that our private partner, Olympia Development of Michigan, will be paying for — as they are required to do under our contract,” said Moddie Turay, executive vice president for real estate for the Detroit Economic Growth Corporation — which administers the Downtown Development Authority, in a written statement.